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Company Law

  • 07-10-2017 2:15pm
    #1
    TroubledTony
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi There,

    I am a director and shareholder in a business which is being run in a manner a no taken in a direction I don't agree with. If I sell up to the other party, can I then establish my own business and compete or does fiduciary duty prohibit me?


Comments

  • #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    TroubledTony wrote: »
    Hi There,

    I am a director and shareholder in a business which is being run in a manner a no taken in a direction I don't agree with. If I sell up to the other party, can I then establish my own business and compete or does fiduciary duty prohibit me?

    So long as you haven't signed anything to say you won't compete then you can compete.


  • #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    As El Rifle says it depends on what is in the shareholders' agreement on non-compete. Your fiduciary duty stops when you resign. If you do sell out, ensure that you resign your directorship properly and the appropriate B10 form is filed with the CRO. Also, you could be 'on the hook' for 12 months after you leave should the company fail. (The liquidator would have to report to the ODCE all who were directors within the 12 months preceding the liquidation.)


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